Uploaded by Devajyoti Bandyopadhyay

Forbidden City - DB,NM,SQ,SK,VU - FINAL

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By:
Devajyoti Bandyopadhyay
Nassif Mohammad
Syed Qadri
Sujith Kurian
Visakh Udaykiran
(Under Guidance of Prof. Anirvan Pant)
(International Business : EPBMI-08 : IIM Calcutta)
Date: 05 June 2022
 Growth
of Beer Industry
 Growth of Beer Industry in China
 Eurasian Brewing Company (EBC)
 Growth of EBC in South-East Asia
 Forbidden City vs. Wild Dog (Business Analysis
and Our suggestion to Mr. Wang)
***Sources: Statsvista
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Beer industry in China is changing at a very fast pace.
Chinese markets are different global in terms of the Govt.
regulations, raw materials supply & consumer preference •
Craft beers growth in sales was 40% between 2015-2018
and is predicted to grow at 120% for next 4 years.
China still a popular price market
Chinese local breweries are still strong but Demand for low
end products is declining as the younger population is
turning towards premium ancraft beers.
China produced 341.11 million hectoliters of beer in 2020,
around 1.6 times more than the United States.
There were 346 beer enterprises in China in 2020, reaching
146.894 billion CNY in sales revenue
***Sources: Market research
IBG
DSB
EBC
IBG
DSB
• Singapore-based brewer
• Coca-Cola
• Aggressive cost-cutting corporate
culture
• Provincial Brewery Selling
• Alliance Carlsberg Group
Victor Wang
MD
Bradley Lee
General Counsel
Grace Chu, Finance
director
David Li , Ops and
Technical Director
Vivian Chin,
Director of Marketing
and Export Sales
Lie Jie, VP, China and
East Asia
Other Regional VP’s
East Asia Opts
China Sales and
Distribution
East Asia Sales and
Distribution
East Asia Marketing
Team
Cost
Structure
Top-line
Growth
Expansion
Opportunities
Global Branding Strategy
Location
No Legal
constraints
High-Quality and
Low-cost product
 Local
versus Global Market (10%
Presumption);
 China Market Characters
Prefers Short term market turnaround,
 More domestic opportunity, Foreign investment a
threat (Liability of Foreignness);
 CAGE Distance Framework (A distance Authoritarian China Gov’t vs. any other Pan-Asia
Gov’t mostly democratic!)
 Magnitude of China Market!
 EBC Situation and Stategy:
 Decision Bias and Conflict between Chin and Li Jie
 Needs adaptation for local responsiveness over
aggregation for Global Integration to China market;

Photo Source:
https://granth.info/market-research/
 Launch
Forbidden City to China market (2
Small Breweries, OR Small scale production
in Existing EBC breweries);
 Shelf Wild Dog as Back up;
 Observe turn around of Forbidden City;
 Decide in Future seeing the turnaround of
‘Forbidden City’.
Source:
https://www.pinterest.com/pin/802414858580311286/
Source:
https://www.chinahighlights.com/beijing/forbidden-city/
Source: https://www.dreamstime.com/stock-illustration-q-questionanswer-d-people-man-person-speech-bubble-image68841761
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